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Friday, September 22, 2006
Joint Economic Committee Decries Income Inequality
Although today's Joint Economic Committee press release was intended to bemoan the absolutely crushing burden of income taxes paid by the top 50% of income earners which has stymied all attempts to get this economy moving [/sarcasm], it actually underscores a troubling trend in income distribution.
According to the new data, the top half of taxpayers ranked by income paid 96.70 percent of the individual income taxes paid in 2004, compared to 86.05 percent in 1949, 89.35 percent in 1959, and 90.27 percent in 1969.
One way to characterize these data is to say what committee chair Rep. Jim Saxon (R-NJ) says: "The new IRS data confirm once again that the tax burden is disproportionately borne by taxpayers in the top half.”
Another way to explain them is to point out the reason for the increasingly disproportionate share of income taxes: the top half of the income distribution is earning disproportionately more income.
Average tax rates for all the groups mentioned in the committee's press release (top 1%, 5%, 10%, 25%, 50%) have been consistently declining since 2001. So, the only way that their burdens of the share of income taxes would increase disproportionately is if their share of income increased disproportionately.
I'll let the charts do the talking.
(click on image to enlarge)
(click on image to enlarge)
(click on image to enlarge)
Posted by Craig Jennings
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